Hi,

I have read from other people's responses that 1099-INT is NOT taxable and therefore you don't have to report it in your 1040-NR form. I'm currently living in Canada and have no gross income in the US (I never received any W2 forms for 2008). I only got the 1099-INT form for an amount a bit higher than $3,500. That amount sounds too high for not having to report. So, does it mean that I have to. If so, which federal tax form should I fill out and where should I report this amount (i.e., line xx, Schedule x)?

Thanks a lot for your help.

Which visa do you have? When did you enter the U.S. and left the U.S.?

I have no visa with the US (unless I apply as a visitor). I left the US in 2006 and came to Canada to work, but I still kept my investments in the US. I heard that I can fill out the W8BEN form to be exempt from filling out taxes since I would be considered a foreigner with no income in the US. The only problem is that I have one bank that doesn't let me fill out that form...

If you could help me, that would be greatly appreciated.

Interest on portfolio investments (CDs, bank deposits, bonds, etc) are exempt from US tax under US domestic law when held by a nonresident alien.

Unless the bank or broker withheld tax there is no reason for you to file.

Even if you have no US tax ID number you may still submit a W8-BEN to the payor filling out part I only since you are not claiming a treaty benefit.

The only problem is that I have one bank that doesn't let me fill out that form...


The bank cannot prevent you from completing a Form W-8BEN. Perhaps you mean that they will close your account if you complete a Form W-8BEN. You could run into some difficulties if you don't fill out Form W-8BEN. If you did fill it out, you would not be receiving a 1099.

Since you have received a 1099 for $3,500, the IRS may be expecting a tax return from you.

To complete a tax return in your case download Form 1040NR
http://www.irs.gov/pub/irs-pdf/f1040nr.pdf

Fill in your name, address, and SS number or ITIN. Now go to page 4. On line 76c write in bank interest. If they withheld nothing put 0 in column a. Following line 76c across put down the interest amount in column e (other) and where you are to enter a tax rate % you put 0.
On line 85 put 0 if they did not withhold. On line 86 column e you put your interest income again. On line 87 column e write 0On line 88 write 0 and 0 on line 52 of the form. Mail it in.

Thanks everyone, you were the most helpful!